Development Finance

Development finance provides the capital needed to transform bare land into completed, income-generating properties. Whether residential, commercial, or mixed-use, this type of funding supports the full lifecycle of a project—from land acquisition and planning through to construction and final delivery.
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  • New Build Development – Building a new housing development or purchasing land
  • Permitted Development
  • Change of Use – For example converting a residential property to a commercial property

Max LTV: 75%

Loan Size: £250k - £2.5m

Loan Term: 18 months

How Development Finance Works with Seneca Bridging

Turning Vision into Realised Developments

Seneca is a trusted, privately-backed provider of short-term development finance. Since we began lending in 2006, we have funded numerous projects from single unit residential schemes through to complex apartment blocks.

Key Features

  • Comprehensive Coverage: Funds typically cover land purchase, professional fees, and build costs.
  • Staged Drawdowns: Capital is released in phases, usually against certified expenditure.
  • Tailored Structures: Designed around project timelines, often short- to medium-term in duration.
  • Market leading LTV’s up to 75%.
  • We typically fund 75% of land purchase costs and 100% of construction/development expenses
  • Loans from £100,000 to £2,5m.
  • Expert Team & Relationships: We work with expert surveys who work closely with Developers to ensure funds are delivered promptly through the construction phase aiding cashflow.
  • Transparent and Responsive Service: With fast decision-making and clear dialogue, we support borrowers from initial enquiry through to delivery and repayment.
  • Unregulated Product: these Bridging loans are not FCA-regulated, they are not available for owner-occupied residential properties.

Development Rates

  • LTVs from 75% net day 1 up to 75% gross against Gross Development Value 180 day VP.
  • We price on risk, the lower the risk the lower the rate.
  • We’ll not charge any fees for initial engagement or early redemption.
  • We typically charge arrangement and exit fees from 1% of the total Development Loan – unlike many of our competitors we do not charge ad hoc administration fees.
  • We only pass on the QS monthly monitoring fees, we don’t apply any internal monitoring fees
  • We always ensure the valuers, solicitors and lawyers who represent our interests offer the right mix of price, speed and expertise.
  • We aim to pay introducer fees on the day of completion.

What lenders are looking for:

Solid Feasibility Plan

Detailed project costings and timeframe

Attractive Costs

Attractive initial purchase price and supportable value estimates for the completed scheme

Defined Exit Strategies

A clear path to a profitable exit

Experienced Developers

An experienced team that can deliver the scheme

Lending Process

Initial Enquiry & Assessment

Exploratory conversations focusing on developer experience, feasibility, and building mutual trust. Sets a solid foundation for smooth project delivery.

Structuring the Facility

Funding structured up to 75% of land + 100% of build costs. Ensures profitability and clarity on financing.

Due Diligence & Contracting

Detailed vetting of team and project. Protects project delivery and lender assurance.

Drawdown Execution & Monitoring

Phased release of funds aligned with construction expenditure, closely monitored by our team. Reliable cashflow throughout the scheme.

Project Exit

Typically achieved through sale or refinancing post-completion. Ensures the finance lifecycle is closed efficiently.

What does a good development loan look like?

  • The property is owned by you or your company or, where the loan is to support a purchase, the property will be owned by you or your company.
  • We provide development finance against property schemes located in England, Wales or Scotland.
  • Your experience and your professional team are key for us.
  • You have an idea of the value of the property now and the value of the property after works have been completed.
  • You are familiar with development finance and how it works.
  • We can support your purchase or refinance of your property (if you already own it) and provide a development facility covering the proposed works as part of the same loan application.
  • We consider most asset classes for the purposes of secured lending, though there are a small number of exemptions, such as land without planning permission, Nursing Homes and Operating Hotels.
  • You have a clear and viable exit strategy. If the exit strategy involves refinancing the security to a long-term lender, we’ll assess the loan in line with standard industry criteria.

Development Finance Case Studies

10 Day Turnaround for Refurbishment Finance in Sheffield

Funded:

£180,000

Location:

Property Type:

Residential

Funding:

Refurbishment Loan

Read article

Empowering First-Time Investors with Agility and Speed

Funded:

£230,000

Location:

Property Type:

Residential

Funding:

Refurbishment Loan

Read article

Lightning-fast auction purchase: £180,000 light refurbishment in Nottingham

Funded:

£180,000

Location:

Property Type:

Residential

Funding:

Bridging Loan, Refurbishment Loan

Read article